Statement of Cash Flows Explained: Direct vs Indirect Method

The Statement of Cash Flows. This statement is one of 3 financial statements, and it tells you how your cash is moving. It can be prepared using the Direct Method, or the Indirect Method The Indirect Method is easier to generate, and starts with your net income from the p&l, followed by your depreciation & amortization, and the net change in all balance sheet account. It is separate by cash from operating activities, cash from investing activities, and cash from financing activities. #financiall

Direct Method | Cash Flow Statements | AS 3 | Ticklish point Made Easy | CA Anil Nahata sir #icai